YORK REGION MORTGAGE BROKER, SARAH COLUCCI, 20 YEARS OF EXPERIENCE HELPING HOMEOWNERS!
  • HOME
  • CONTACT US
  • PRIME RATE CANADA
  • MORTGAGE NEWS

Welcome to Our Smart Mortgage Blog

​Navigating mortgage financing can be daunting, but with the right strategy, it's manageable. This blog offers expert advice and insights on understanding interest rates and leveraging market trends for smart real estate investments. Whether you're a first-time buyer or a seasoned investor, "Our Smart Mortgage Blog" will provide the tools to make informed decisions and achieve your homeownership goals. Let's dive in and secure the best outcomes together.

What's The Difference Between An Equity Take Out And A Reverse Mortgage?

11/30/2020

0 Comments

 
Picture
Someone recently asked me about the differences between a reverse mortgage and an equity take out. You may wonder the same.

A reverse mortgage pays you every month using your property's equity, whereas an equity take out allows you to borrower as much money as you require (provided it's within lending guidelines) and make monthly payments on it.  

Both loans come with added interest, so deciding which one you should take ultimately depends on your financial situation and your age since reverse mortgages are only available to those over 55 years of age.  


Some people can't afford to make monthly payments on a mortgage loan, like, for example, retired people receiving a Government pension. And, we definitely   don't want people to get into a situation that puts them at risk of mortgage default, so an equity take out may not be suitable for them.

A reverse mortgage can help people that have affordability concerns since their equity  would be  paid to them in a smaller monthly payment.

Although a reverse mortgage has its benefits, it also has downfalls, including the fact that borrowers over the age of 55 are reducing their assets, accumulating interest and possibly interfering   with inheritance plans.

If you can comfortably make monthly payments, then it would be a wiser option to consider an equity take out through an equity program that considers your property's value without a heavy reliance upon income requirements. This way you can receive the lowest interest rates which makes borrowing more affordable.

If you have questions about either type of mortgage, please call or write. I have expertise in both equity mortgages and reverse mortgages and can advise you with confidence.


Sarah A. Colucci
Mortgage Agent Lic. M14000929
Mortgage Edge, Broker 10680
Direct: (647) 773-4849
www.coluccimortgages.com

RSS Feed

0 Comments



Leave a Reply.

    Picture

    By: Sarah Colucci

    Senior Mortgage Agent, Level 2, Lic. M14000929, 
    Sherwood Mortgage Group, Broker 12176, 
    Direct: (647) 773-4849

    RSS Feed

    Archives

    September 2024
    August 2024
    July 2024
    March 2024
    February 2024
    November 2023
    October 2023
    September 2023
    July 2023
    June 2023
    April 2023
    January 2023
    October 2022
    September 2022
    July 2022
    June 2022
    May 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    August 2021
    July 2021
    June 2021
    May 2021
    February 2021
    December 2020
    November 2020
    October 2020
    September 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    February 2019
    January 2019
    December 2018
    August 2018
    May 2018
    April 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017

    Categories

    All

    RSS Feed

GET IN TOUCH WITH SARAH

Let's get started today.



Address

411 Queen St. 
Newmarket, ON
​L3Y 2G9

Sarah A. Colucci, Mortgage Agent Lic. M14000929
Sherwood Mortgage Group
Licence # 12176

Telephone

Direct: 647-773-4849
​
Email: [email protected]
Picture
Photos from DFID - UK Department for International Development, wuestenigel, Free For Commercial Use (FFC)
  • HOME
  • CONTACT US
  • PRIME RATE CANADA
  • MORTGAGE NEWS